SYDNEY, Jun 01, 2004 (AsiaPulse via COMTEX) -- The Australian dollar finished the day higher as firmer commodity prices and relatively stable equity markets helped support the currency.

At 1700 AEST the local currency was trading at 71.62 US cents, compared with 71.47 at yesterday's close.

It today reached a low of 71.25 and a high of 71.69 US cents.

RBC currency strategist Greg Gibbs said the Australian dollar had traded in a fairly tight range without guidance from the United States market, which was closed for Memorial Day Holiday.

There was also a holiday in London and throughout much of Europe.

The Australian dollar fell throughout the morning and then rallied during the afternoon session.

Mr Gibbs said softer than expected retail sales figures may have weighed on the currency early but said the market was still quite optimistic about the unit's strength.

"We are still quite upbeat given we are seeing solid moves higher in commodity prices, fairly solid equity markets globally and in the Asian region," he said.

"So it rallied on (commodities and equities) and a generally softer US dollar in the afternoon session."

Mr Gibbs said price action tonight would be driven by Europe as opposed to the US.

"(But) we have got key numbers in Europe tonight, the purchasing manager report through the UK and Europe, they are probably the main interest in offshore markets."

Mr Gibbs said the next US release of note was the Institute of Supply Management (ISM) report tomorrow night.

The Australian dollar was at 78.50 yen from 79.22 at yesterday's close and 58.46 euro cents from 58.57.

The euro was buying 1.2247 US dollars from 1.2203 yesterday and 134.17 yen from 133.59.

The US dollar was at 109.57 yen from 109.44.

Australian bonds closed broadly unchanged after traders brushed off key domestic economic data today ahead of tomorrow's Reserve Bank of Australia announcement.

At 1630 AEST the yield on the Commonwealth Government May 2013 bond was at 5.870 per cent from 5.850 at yesterday's close and the yield on the November 2006 bond was steady at 5.305 per cent.

On the Sydney Futures Exchange, the June 2004 10-year bond futures contract was at 94.130 from 94.145 and the three-year contract was unchanged at 94.51.

Tomorrow, the RBA will announce any changes to interest rates, following today's board meeting.

No change to the official 5.25 per cent cash rate is expected by the market.

Today's bond trading was subdued following the holiday in the US overnight.

ABN Amro head of government, semi trading, Andrew Kennedy said it had been a very quiet session for local bonds.

He said the release of March quarter current account deficit, which was broadly unchanged, and flat retail trade figures were largely ignored by the local market.

"The data hasn't hurt bonds to any degree," Mr Kennedy said.

A couple of months ago the same sort of data would have sent local bond prices rallying, with the local market in a very bullish mode, he said.

Also tomorrow the Australian Bureau of Statistics will release first quarter GDP growth.

The 90-day bank bill was at 5.490 from 5.495 per cent at Friday's close and the 180-day rate was at 5.570 from 5.585.

At 1600 AEST the Australian dollar on the Reserve Bank Trade Weighted Index (TWI) was at 61.3 points compared to 61.1 at yesterday's close.